MSRP (manufacturer’s suggested retail price)

MSRP is the manufacturer’s recommendation, not a price the dealership is bound by. It appears on the window label that federal law requires on new vehicles, along with standard equipment, options and fuel economy information.

What a customer actually pays is affected by incentives, market conditions, dealer added items and negotiation, so MSRP is a reference point rather than a quote.

Why it matters for a sales manager

Callers frequently compare MSRP across stores as though it were the deal. Explaining briefly what MSRP includes, and what it does not, is often the fastest way to move a price conversation toward a real figure discussed in person.